Just 3% of European companies NOT planning to adopt GenA
Spending on artificial intelligence (AI) by enterprises in EMEA is forecast to rise by 61% this year, with 40% of CIOs viewing the technology as a ‘game changer’, according to a new IDC study sponsored by Lenovo (CIO PlayBook 2024: It’s all About Smarter AI).
IDC’s survey of 600 IT and business decision-makers shows that almost all European companies are incorporating generative AI (GenAI) into their strategies, processes and offerings. More than half (57%) have already invested in the technology and a further 40% plan to do so this year. Just 3% have no plans to adopt GenAI.
A majority of companies in every industry sector have already invested in GenAI, from 50% of government organisations to 65% of enterprises in the telco sector and 67% in banking, financial services and insurance (BFSI).
While high levels of interest in GenAI are powering the current boom in artificial intelligence,
all forms of AI are benefiting, with GenAI, interpretative AI and machine learning each forecast to attract 25% of planned investment.
In addition, there is widespread recognition of the importance of edge computing for AI, with organisations in every vertical having increased investment in that area, up 29% in manufacturing and 60% in the telco sector.
Reflecting stringent regulations around data privacy, particularly in mainland Europe, most organisations are basing their implementation strategies on hybrid cloud (48%) or private cloud (24%), with just 17% opting for public cloud.
Implementation challenges
The biggest technological challenge associated with GenAI, cited by 40% of respondents, is the capability limitations of data models (i.e. the large amounts of computational power and data resources needed to train them), followed by fears around the potential misuse of
AI and AI ‘hallucinations’ (37%), the difficulty of finding a reliable data platform (36%) and reliance on third parties for generative AI development (35%).
From an organisational perspective, the most widely cited concerns are dealing with employee fears around job displacement (40%) and resistance from IT teams that are not used to implementing rapidly evolving AI tools and technologies (45%).
Commenting on the findings, Neil Ward-Dutton, VP AI, Automation & Analytics Europe at IDC, said: “There is a growing consciousness across every sector that AI offers potential to boost efficiency and competitiveness. CIOs should take this opportunity to invest in core enabling technologies and ensure that AI expertise is not located within one single team but spread throughout the organisation.”
